Dow Jones down 4% as investors take profits amid rising US Covid-19 cases

The Dow Jones Industrial Average tumbled 4% in early morning trading on Friday, with investors opting to take profits amid rising Covid-19 cases.

The Dow Jones slipped more than 300 points on Friday morning, with profit taking likely to erase a proportion of this week’s gains. It will be interesting to see how US equities fair next week without any further relief fuelling the financial markets.

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Dow Jones rallies 20% after stimulus package

The Dow Jones has rebounded 20% since Monday after US politicians passed a $2.2 trillion emergency relief package aimed at limiting the economic impact of the Covid-19 pandemic – the deal is the largest of its kind in American history.

‘This is a strange and evil disease,’ Senate minority leader, Chuck Schumer, said ahead of the vote. ‘When we pass this bill, instead of hugging each other, we’ll wave from a distance.’

The Dow Jones has gained more than 4000 point since Tuesday – its largest three-day surge since 1931.

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European equities recovery comes to an end

On the other side of the Atlantic, European equities are also likely to end the week on a sour note after a four-day surge spurred by government stimulus packages.

The FTSE 100 climbed 17% since Monday to close at 5815 on Thursday. However, the blue-chip index is down 6% on Friday after sliding more than 350 points, as investors around the world take profits asCovid-19 cases rise.

In Germany, the DAX is down 3%, while the French benchmark, the CAC 40 is down 4%, eating into the near 15% gains both indexes saw over the past four trading sessions.